Kinder Morgan Inc (KMI) Dividend Increase

Kinder Morgan Inc (KMI) announced a 2.44% increase in its cash dividend. The quarterly cash dividend will increase from $0.41 to $0.42 per share and payable to on May 16, 2014 to shareholders on record as of Apr 30, 2014. The amount represents an increase of 11 percent from the first quarter of 2013 cash dividend amount. The annual dividend rate goes up from $1.64 to $1.68.
Kinder Morgan reported that the cash available to pay dividends rose to $573M, up 12% from a year ago and remains on track to meet or exceed its published annual budget of $1.78B in cash available to pay dividends. More dividend increases in 2014 are expected as KMI expects to declare dividends of $1.72 per share for 2014, an 8 percent increase over its 2013 declared dividend of $1.60 per share.
My portfolio consists of 60 shares of KMI, which increases my annual dividends from $98.40 to $100.80. My position in KMI was initiated when it was at a higher price, so my YOC is slightly lower than current yield. With this increase, my YOC is 4.68%.

6 thoughts on “Kinder Morgan Inc (KMI) Dividend Increase

  1. Its still attractively valued, CD. If the dividend rises to the promised $1.72 per year level, thats some seriously attractive yield. I would buy more if I had more cash and didnt already have a huge exposure to the energy sector.

  2. There’s gonna have to be some good increases with the next two payments to get them up to $1.72 for the year, either $0.43/$0.46 or $0.44/$0.45. I really like how KMI states their target annual distribution and then gives smaller increases throughout the year to get there. Such a great company and great CEO. Long KMI, although I don’t think I can buy too much more right now.

    • Same here, JC. I love how they have a target for the year and make it clear to the shareholders. I am looking forward to more increases in the coming quarters 🙂

      Happy investing

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